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Brexit campaigners were just 'disillusioned' according to Nicola Sturgeon

They didn't think the EU benefited them, and see the advantages of free trade and free movement

Nicola Sturgeon

She said: "We're working with business to create a society where the benefits of economic growth are shared more equally, so that future growth is stronger and more sustainable.

"I think the EU referendum shows it is more important than ever.

"I'm proud of the fact that Scotland voted strongly to remain in the EU. But I can't ignore the fact that, even in Scotland, a million people voted to leave.

"They didn't think the EU benefited them, and see the advantages of free trade and free movement."

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Nicola Sturgeon addresses the IoD in London

She said there were "many, many causes" for people voting to Leave, such as doubts about the EU as an organisation.

She added: "But in part, I think Brexit was a product of a sense of disenfranchisement and disillusionment.

"It was borne of inequality, of feelings of powerlessness, of austerity budgets which hurt public services and social safety nets that so many people rely on.

"One of the consequences of the referendum, I think, must be a new effort, and I hope it's given real substance in the UK Government's autumn statement, to ensure the benefits of growth and globalisation are more fairly distributed."

Ms Sturgeon said remaining a member of the single market after Brexit "will be crucial to businesses and communities in Scotland".

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Brexit campaigners call for Article 50 to be triggered

But she acknowledged that certain aspects of single market membership, such as freedom of movement, "will not satisfy everyone".

She said: "There is a strong democratic justification for retaining singe market membership.

"I don't believe there is a clear mandate for what is generally known as a hard Brexit.

"Single market membership seems to me to be the most obvious consensus position we should try to work towards.

"I deeply regret the outcome of the referendum. But I do not want to see the UK Government compound the mistakes of the EU referendum during the negotiations, and end up in a position which is much harder than the one we needed to end up in."

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Nicola Sturgeon again refused to rule out a new Scottish independence referendum

Sturgeon's top moments

Scotland's First Minister Nicola Sturgeon in pictures.

She added that the strategy for the Scottish Government was to build an economy based on exports, innovation, high skills and increased productivity.

Ms Sturgeon also repeated her stance that a fresh vote on Scottish independence cannot be ruled out.

She said: "In many ways, EU membership is now part of Scotland's sense of itself.

"I've made it clear that a referendum on Scottish independence must remain an option, if the approach taken by the Westminster Government proves to be seriously damaging to our economy, our competitiveness and to our place in the world."